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Old 06-10-2009, 09:21 AM   #3 (permalink)
The SMG
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agree with Malvolio. Flat rate vat has nothing to do with whether or not you can claim back expenses through your LTD. However, if you do have large input vat expenses (or expenses that incur vat) you may not be necessarily better off using FRV. Check the difference between the VAT you collect from your client(s) and the flat rate vat % you pay over to Hector. If this difference is LESS THAN the vat you're regularly paying on expenses then you're probably better off accounting for vat in the normal way (output vat charged to clients less input vat incurred on business expenses).

HTH

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